Is There Such a Thing as Having Too Much Insurance?

Published: March 26, 2015

When it comes to insurance, there are generally two camps -- those who don’t carry enough insurance (or the bare minimum) because they don’t believe they’re ever going to need it, and those who load up on as much insurance as they can get their hands on.

So the answer to “Can I have too little insurance?” is (we hope) obvious, but what about having too much insurance? Is it possible?

As it turns out, yes. And one of the most obvious but overlooked situations is when people purchase insurance for something that would cost less to replace if anything should ever happen to it. Another is adding extra insurance where it’s extraordinarily unlikely to be needed -- flood insurance in an area that has never had a flood in recorded history might be more than you need.

Then there are policies that are often a complete waste of money, like flight insurance. Flight insurance pays out if you should be killed in a plane crash, but you’d be covered for that under a life insurance policy that would cover you for a lot more than just a plane crash.

The best way to guarantee that your insurance is in the “Goldilocks zone” is to have an agent you trust, who will make sure you’ve got the right coverage for your age and lifestyle. Then you can be sure your coverage is just right.

J.K. Olivieri Insurance Agency, Inc. is an independent insurance agency founded in 1979 which represents a number of major insurance companies. Our mission is to protect our clients’ financial future. We feel our role as an insurance agency is to assist our clients in selecting the best possible programs to fill their specific needs. In doing so, we shall research and present our clients with the best possible programs available at the best possible prices.